The Economic Impact of Pandemics on Individuals, Families and Communities

Abstract

The Coronavirus disease 2019 (COVID-19) pandemic has dramatically changed systems, routines, practices, and beliefs. This pandemic will have a number of adverse outcomes which will continue to be felt for years to come. Understanding the economic impact on individuals, families, businesses, and communities is essential for developing strategies that reduce long-term negative outcomes. However, we are unaware of any evidence synthesis describing the range of economic or financial impacts associated with pandemics. In this paper, we analyze data from a large scoping review of previous pandemics to identify the various economic and financial impacts of global disease outbreaks on families, businesses, and economic systems. We found that individuals and families around the world experienced a reduction or loss of income associated with losing their job or having to work fewer hours, which increased their psychological stress. At the same time, the pandemic has negatively affected the financial outcomes of small and medium-sized businesses due to reduced economy activity, disruptions in the supply chain, and weakened infrastructure. We examine these findings in the light of two topics. First, we discuss how vulnerable and minority communities experience the various financial and economic impacts of global outbreaks to a greater degree compared to the general public. We also discuss the concepts of flexibility and resilience in order to understand how businesses respond to the changes brought forth by the pandemic.